Eye on Polk: Donation Oversight Is Called Lacking

Most local governments give to nonprofits without accountability.

A 2004 serpentine sculpture titled "Verde Voyager" by artist Glenn Zweygardt stands outside the Polk Museum of Art in Lakeland on Friday. The museum received $81,955 from Lakeland, $31,250 from the county and $2,500 from Winter Haven during the current fiscal year.

ERNST PETERS | THE LEDGER

By JEREMY MAREADYTHE LEDGER

Published: Saturday, November 24, 2012 at 1:48 a.m.

Last Modified: Saturday, November 24, 2012 at 1:48 a.m.

LAKELAND | More than $1.1 million in taxpayer money was donated by Polk County governments to private organizations for the current fiscal year, according to records.

Aside from money given by the city of Lakeland, those donations came largely without any oversight by the governments that gave it, according to records and policies reviewed by The Ledger.

The donations are a standard practice for local governments and have continued in tight economic times. And many elected leaders said the donations are needed to help keep many of these local nonprofit agencies, which provide vital functions within the communities, afloat.

"I do think it's appropriate," Winter Haven Commissioner Jamie Beckett said. "If the money is going toward humanitarian or civic work that benefits the community and city government, I definitely support that. Winter Haven has undoubtedly benefited from Main Street. They can fulfill a role that government can't."

No allegations of impropriety have been made to The Ledger regarding the use of the donated money by the nonprofit agencies. But a watchdog group and several individuals have questioned the need for the donations and how well the funds are tracked.

DONATION PRACTICES

Dozens of nonprofit agencies received money this year from the city and county governments.

The amounts given varied widely from $500 for smaller programs like Citizens CPR, to $157,000 for the Haines City Economic Development Council.

Money for the programs, according to documents filed with the government agencies, will be used for a variety of things, such as teaching young children, caring for the handicapped, teaching CPR, trying to spur economic development, after-school programs for low-income families and caring for stray cats.

But what happens after those government agencies cut the checks?

"You know the answer to that just as well as I do," Polk County Commissioner Ed Smith said. "There's no accountability. It's an inappropriate expenditure of taxpayer dollars."

Smith is a longtime critic of governments donating money to private agencies and has opposed measures to do so. "They all can go out and raise money. Many of them don't try to raise money."

Smith said if they ever came to his home, he'd gladly give to their cause, but he didn't think it was the place of taxpayers to foot the bill for their budgets.

Of the seven governments surveyed by The Ledger, only Lakeland had a system in place to oversee how the money was spent. One, Lake Wales, doesn't make any such donations.

Polk County staffers don't follow up to verify how money from the county is used, said Todd Bond, county budget officer. And neither do staff members for Bartow, Winter Haven, Auburndale or Haines City, records show.

"We do not have a policy or mechanism in place where we require them to provide us with any documentation," ­Auburndale Assistant City Manager Shawn Sherrouse said.

Sherrouse said most of the agencies the city gives money to are overseen by a board of directors. And in the case of the Chamber of Commerce, which was given $10,000 this year, there is a written agreement in place to ensure the money is spent appropriately.

The same is true of Haines City, which relies on the contracts it has with the individual agencies, Assistant City Manager Jonathan Evans said.

The contracts detail what is to be done with the money, and the agencies are expected to follow by those documents, he said. However, no documentation is provided to the city to show how money is spent.

For Lakeland, Mayor Gow Fields said a committee that reviews all the applications for funds also does spot checks throughout the year to make sure the money is being used for the intended purpose and that the programs they fund are successful.

"We know exactly what the money is being used for," Fields said. "A citizen's advisory committee reviews the requests and ranks them (the organizations). It's a competitive process for a small pot of money."

After the money is approved and checks are handed out, the committee also reports back on the performance of programs and uses that to determine any future funding, he said.

Winter Haven's Beckett said he doesn't have a problem with not reviewing invoices or auditing the individual agencies that receive the donated funds. He said Polk County is a close-knit community, and if the money wasn't being used appropriately, it would be known.

"I think commissioners should be held responsible for what happens," he said. "I suspect if we put additional auditing on groups ... it would add another level of bureaucracy to organizations that are understaffed and underfunded. I'm comfortable with the personal side.

"I think as budgets got tighter, we really wanted to focus on the important stuff," Leary said. "I'm not saying we never did it (making donations), but we haven't since I've been here."

ACCOUNTABILITY SOUGHT

How taxpayer money is given to nonprofit groups is a "long-standing concern" for Florida TaxWatch, said Dominic Calabro, the group's president and CEO.

"Giving to any organization ... holds a fiduciary responsibility and, dare I say, a statutory responsibility," he said. "By what right do they have to give out taxpayer money without the assurances?"

Calabro said several questions should be asked before any agency gives out any taxpayer money.

"Is this a necessary city or county government function?" he said.

Florida TaxWatch is a nonprofit research institute that focuses on the state's taxing and spending issues.

Any money given should provide a clear public purpose, Calabro said, and government heads should know what they are getting for their money, whether the agency will be held accountable and whether the programs are reasonably efficient.

If a program cannot meet that criteria, it might not be the best candidate for a donation, he said.

"Charity does not equal taxation," he said. "Just because it is a good thing for the community does not mean it's a government function."

Some elected officials defended their decision to give to the charities because they said it would ultimately cost the taxpayers more if those functions were taken over by the county.

County Commissioner Melony Bell said the volunteer hours alone, if the county had to pay them, would cost more than five times a donation to some nonprofits.

But she said she agrees more accountability is needed.

Sandra Dimsdale Horan, public relations and marketing manager at the Polk Museum of Art, said many nonprofit agencies provide reports to donors and sponsors of their programs to show how the money was used and said she doesn't know why all government entities don't require the same scrutiny.

"I think it's surprising the municipalities in the ­surrounding areas don't ask for that information," she said. "I think that's reasonable. It wouldn't be a burden at all because we're used to that."

The museum received $81,955 from Lakeland, $31,250 from the county and $2,500 from Winter Haven during the current fiscal year, according to reports.

State and federal grants require the museum to show how the money it receives is spent each year, along with other groups and sponsors, Horan said. "It's our responsibility to our sponsors and donors."

CONFLICT OF INTEREST?

In one instance, a Polk County commissioner who serves as a vice chairman of a nonprofit voted to give money to that organization. It's something at least one of his now-former colleagues said should have been disclosed.

Former commissioner Bob English voted in September to approve $35,000 for the West Central Florida YMCA. The money was meant to help the organization's Poinciana operation.

The money ultimately was approved, but English never made his involvement with the YMCA known.

English, who left office this month, didn't return calls for comment.

Bell said she didn't know of his involvement and said it should have been brought to the board's attention.

"I would certainly disclose it," she said. "I think he should have done that."

But Smith said he didn't think English violated any ethics laws because English didn't stand to receive any financial gain from the deal.

Smith said if he were in the same situation, he probably would have said something, but "I would not recuse myself from a vote."

[ Jeremy Maready can be reached at jeremy.maready@theledger.com or 863-802-7592. ]

<p>LAKELAND | More than $1.1 million in taxpayer money was donated by Polk County governments to private organizations for the current fiscal year, according to records.</p><p>Aside from money given by the city of Lakeland, those donations came largely without any oversight by the governments that gave it, according to records and policies reviewed by The Ledger.</p><p>The donations are a standard practice for local governments and have continued in tight economic times. And many elected leaders said the donations are needed to help keep many of these local nonprofit agencies, which provide vital functions within the communities, afloat.</p><p>"I do think it's appropriate," Winter Haven Commissioner Jamie Beckett said. "If the money is going toward humanitarian or civic work that benefits the community and city government, I definitely support that. Winter Haven has undoubtedly benefited from Main Street. They can fulfill a role that government can't."</p><p>No allegations of impropriety have been made to The Ledger regarding the use of the donated money by the nonprofit agencies. But a watchdog group and several individuals have questioned the need for the donations and how well the funds are tracked.</p><p>&nbsp;</p><p><strong>DONATION PRACTICES</strong></p><p>Dozens of nonprofit agencies received money this year from the city and county governments.</p><p>The amounts given varied widely from $500 for smaller programs like Citizens CPR, to $157,000 for the Haines City Economic Development Council.</p><p>Money for the programs, according to documents filed with the government agencies, will be used for a variety of things, such as teaching young children, caring for the handicapped, teaching CPR, trying to spur economic development, after-school programs for low-income families and caring for stray cats.</p><p>But what happens after those government agencies cut the checks?</p><p>"You know the answer to that just as well as I do," Polk County Commissioner Ed Smith said. "There's no accountability. It's an inappropriate expenditure of taxpayer dollars."</p><p>Smith is a longtime critic of governments donating money to private agencies and has opposed measures to do so. "They all can go out and raise money. Many of them don't try to raise money."</p><p>Smith said if they ever came to his home, he'd gladly give to their cause, but he didn't think it was the place of taxpayers to foot the bill for their budgets.</p><p>Of the seven governments surveyed by The Ledger, only Lakeland had a system in place to oversee how the money was spent. One, Lake Wales, doesn't make any such donations.</p><p>Polk County staffers don't follow up to verify how money from the county is used, said Todd Bond, county budget officer. And neither do staff members for Bartow, Winter Haven, Auburndale or Haines City, records show.</p><p>"We do not have a policy or mechanism in place where we require them to provide us with any documentation," ­Auburndale Assistant City Manager Shawn Sherrouse said.</p><p>Sherrouse said most of the agencies the city gives money to are overseen by a board of directors. And in the case of the Chamber of Commerce, which was given $10,000 this year, there is a written agreement in place to ensure the money is spent appropriately.</p><p>The same is true of Haines City, which relies on the contracts it has with the individual agencies, Assistant City Manager Jonathan Evans said.</p><p>The contracts detail what is to be done with the money, and the agencies are expected to follow by those documents, he said. However, no documentation is provided to the city to show how money is spent.</p><p>For Lakeland, Mayor Gow Fields said a committee that reviews all the applications for funds also does spot checks throughout the year to make sure the money is being used for the intended purpose and that the programs they fund are successful.</p><p>"We know exactly what the money is being used for," Fields said. "A citizen's advisory committee reviews the requests and ranks them (the organizations). It's a competitive process for a small pot of money."</p><p>After the money is approved and checks are handed out, the committee also reports back on the performance of programs and uses that to determine any future funding, he said.</p><p>Winter Haven's Beckett said he doesn't have a problem with not reviewing invoices or auditing the individual agencies that receive the donated funds. He said Polk County is a close-knit community, and if the money wasn't being used appropriately, it would be known.</p><p>"I think commissioners should be held responsible for what happens," he said. "I suspect if we put additional auditing on groups ... it would add another level of bureaucracy to organizations that are understaffed and underfunded. I'm comfortable with the personal side.</p><p>"I'll take the brunt if it doesn't work out."</p><p>But not every city is in favor of giving out donations.</p><p>"We don't give out any donations," said Lake Wales City Manager Terry Leary. "It's kind of our rule here."</p><p>That hasn't always been the case, she said. But times have changed.</p><p>"I think as budgets got tighter, we really wanted to focus on the important stuff," Leary said. "I'm not saying we never did it (making donations), but we haven't since I've been here."</p><p>&nbsp;</p><p><strong>ACCOUNTABILITY SOUGHT</strong></p><p>How taxpayer money is given to nonprofit groups is a "long-standing concern" for Florida TaxWatch, said Dominic Calabro, the group's president and CEO.</p><p>"Giving to any organization ... holds a fiduciary responsibility and, dare I say, a statutory responsibility," he said. "By what right do they have to give out taxpayer money without the assurances?"</p><p>Calabro said several questions should be asked before any agency gives out any taxpayer money.</p><p>"Is this a necessary city or county government function?" he said.</p><p>Florida TaxWatch is a nonprofit research institute that focuses on the state's taxing and spending issues.</p><p>Any money given should provide a clear public purpose, Calabro said, and government heads should know what they are getting for their money, whether the agency will be held accountable and whether the programs are reasonably efficient.</p><p>If a program cannot meet that criteria, it might not be the best candidate for a donation, he said.</p><p>"Charity does not equal taxation," he said. "Just because it is a good thing for the community does not mean it's a government function."</p><p>Some elected officials defended their decision to give to the charities because they said it would ultimately cost the taxpayers more if those functions were taken over by the county.</p><p>County Commissioner Melony Bell said the volunteer hours alone, if the county had to pay them, would cost more than five times a donation to some nonprofits.</p><p>But she said she agrees more accountability is needed.</p><p>Sandra Dimsdale Horan, public relations and marketing manager at the Polk Museum of Art, said many nonprofit agencies provide reports to donors and sponsors of their programs to show how the money was used and said she doesn't know why all government entities don't require the same scrutiny.</p><p>"I think it's surprising the municipalities in the ­surrounding areas don't ask for that information," she said. "I think that's reasonable. It wouldn't be a burden at all because we're used to that."</p><p>The museum received $81,955 from Lakeland, $31,250 from the county and $2,500 from Winter Haven during the current fiscal year, according to reports.</p><p>State and federal grants require the museum to show how the money it receives is spent each year, along with other groups and sponsors, Horan said. "It's our responsibility to our sponsors and donors."</p><p>&nbsp;</p><p><strong>CONFLICT OF INTEREST?</strong></p><p>In one instance, a Polk County commissioner who serves as a vice chairman of a nonprofit voted to give money to that organization. It's something at least one of his now-former colleagues said should have been disclosed.</p><p>Former commissioner Bob English voted in September to approve $35,000 for the West Central Florida YMCA. The money was meant to help the organization's Poinciana operation.</p><p>The money ultimately was approved, but English never made his involvement with the YMCA known.</p><p>English, who left office this month, didn't return calls for comment.</p><p>Bell said she didn't know of his involvement and said it should have been brought to the board's attention.</p><p>"I would certainly disclose it," she said. "I think he should have done that."</p><p>But Smith said he didn't think English violated any ethics laws because English didn't stand to receive any financial gain from the deal.</p><p>Smith said if he were in the same situation, he probably would have said something, but "I would not recuse myself from a vote."</p><p>&nbsp;</p><p>[ Jeremy Maready can be reached at jeremy.maready@theledger.com or 863-802-7592. ]</p>